Published: | Updated: September 16, 2017

Definition - What does Insurability mean?

Insurability refers to the degree to which a person or a company is deemed insurable by an insurance company. In other words, it is an assessment of potential risk by an insurance company. All insurance companies have their own methods for evaluating insurability. Some of these evaluations include statistics for age, weight, health, etc.

Insuranceopedia explains Insurability

Insurability can be particularly important for life insurance. This is because if a person is deemed to have very low insurability, it means that the person has a high chance of death. This means that the life insurance company would have a high chance for paying out a claim on the person. Factors that can lower insurability for life insurance candidates include old age, heart disease, cancer, reckless lifestyle, and more. Factors that can increase insurability for life insurance candidates include youth, healthy lifestyle, physical fitness, no major illnesses, etc.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: